Corning Watch: Corning Inc. may hit $10B in revenue in 2014

What does the Twin Tiers’ largest employer have to do to be successful in 2014?

There are a number of things, none of which is easy.

First, Corning Inc. needs to make the most of its blockbuster deal with Samsung Corning Precision Materials. Last fall, the Fortune 500 company bought out the South Korean glassmaker’s share of their longtime joint venture.

To make this deal a success this year, Corning has to generate sharply higher new revenue (as much as $2 billion) from the Korean operation, with some of that translating into new profits.

This was the year Corning said it hoped to hit $10 billion in revenue. Samsung Corning gives it the best chance to reach that level.

What else can Corning squeeze out of the Samsung Corning deal? A way to bring back as much as $1.2 billion in profits to the U.S. without paying the usually exorbitant taxes on such repatriated money.

If the company can take advantage of the opportunity to diversify Samsung Corning — introduce some Gorilla Glass and/or Willow Glass production to the company’s basic liquid crystal display glass line — that should also contribute to the success of the project.

Finding new niches for products such as protective Gorilla Glass and flexible Willow Glass also could help make 2014 successful. Gorilla Glass has potential in the architectural, appliance and automotive markets. Willow Glass is waiting for a significant debut in the consumer electronics market.

Life Sciences is also poised to deliver some punch to Corning Inc.’s earnings. Its acquisition of Discovery Labware last year pushed its sales up by double digits and has the potential to continue that kind of growth in 2014.

The big question mark as Corning Inc. enters 2014 is its environmental products portfolio. The diesel pollution control business has been a consistent underperformer, based on projections of tightened pollution standards in the U.S. and worldwide.

If diesel can live up to its billing this year, Corning Inc. will have the potential to come out of 2014 with several profitable and growing businesses.

There are always surprises. Corning has never been shy about shedding its worst-performing businesses, although its

investments in its current products seem solid. New opportunities or unexpected stumbles could change that and lead to different directions before the year has ended.